Greenfield Investment
Autor: d1hutch • April 14, 2013 • Research Paper • 846 Words (4 Pages) • 1,229 Views
Unit One Individual Project
Greenfield Company
Derrick Hutcherson
AIU
Abstract
Developing a Greenfield could be a huge undertaking for any company. When looking at two different countries, one being part of the EU and the other not, several factors must be looked at. One such factor must be the cultures of the countries and how they will or will not be a fit for the country. Also being part of the EU has several strong points and weak points. Weighing the two will determine whether which of the two chosen countries would be a best fit.
Ecuador
Ecuador is one country I have decided to use because it is an up and coming economy. Ecuador has a huge deposit of oil that it sits on and has not even begun to harvest it. The country has a huge tourism market due to its year round warm climate. It also has one of the last standing and thriving rainforests on the planet earth. The country also has recently adapted a retirement plan for its elders to make sure that they are well taken care of.
“Fitch Ratings has affirmed Ecuador's Long-term foreign currency Issuer Default Rating (IDR) at 'B-', its Short Term IDR at 'B', and the Country Ceiling at 'B-'. The Rating Outlook is revised to Positive from Stable” (Fitch 2012). Entering Ecuador’s market would not be a problem when it comes to interest rates and investments due to the currency being the same. If the company also decides to provide credit within the local market it can do so with the same rate of exchange and choices made within the U.S. being that the dollars are the same.
Since March 13, 2000 the currency of Ecuador has been the US Dollar. However the native coins of Ecuador named the centavo coins are still used in circulation. Ecuador has also become a great place for people in the US to retire to. It was ranked the world’s best place to retire in 2009. Stated in the New York Times Ecuador is “inexpensive, high quality health care provided by the 18 hospitals and medical centers in the city and the large number of English-speaking doctors” (Gill, 2012).
Ecuador’s culture is different than that of the U.S. in that the people of Ecuador do not borrow on credit as we do here. Mostly they spend what they have and save for any future purchases that they may need. This may be a problem for the company if it decides
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